Savings
What are savings?
What is the definition of income?
Money earned from work or investments
What are expenditures?
Any money spent on something, whether it is a small item or a large one
What is a budget?
A budget is a tool used to manage a person's salary and expenditures.
What are examples of bad debt?
Taking out a loan you can't afford, Not paying credit card bills, forgetting important bills
What are some reasons for saving?
Unexpected Purchases, ExspensivePurchases, Life Goals, and Retirement
What are TWO common ways to earn income?
A Job or An Investment
What is the best way to manage your expenditures?
A Budget
How does a budget help you?
Making sure you don't overspend, Having money ready for emergencies, Saving for future goals
Missing Credit Card or Mortgage payments (GDC or BDC
Bad Debt Choice
What are THREE benefits of saving?
Money for future goals, emergencies/unexpected expenses, and
What is the starting point of personal income?
Getting a job
(True or False)
Expenditures can also include credit cards, loan payments, and money donated to charity.
True
What are the most important expenses' in a budget?
Rent/House Payments, Food/Groceries, Utilities/Bills, Car payments, Water/Electricity Bills
What are examples of good debt?
Paying monthly bills in full, getting loans with low interest rates, keeping a credit card in case of emergencies.
What are some common things people save for?
(Atleast 3 Answers)
Cars, Houses, Electronics, Vacations, Clothes, Utilities, Emergencies, Household items
What is Investment Income?
Income from financial instruments such as stocks, real estate, leasing, or making loans to other people.
What are 5 examples of important monthly expenditures?
Groceries, Rent/Mortgage, Car payments, Phone/Internet Bills, and Water/Electricity bills
What is an example of a bad budget?
Spending too much on wants instead of needs (ex: Putting too much money towards entertainment and not enough on bills or groceries)
Charging to your credit card during an emergency when you don't have money on you (GDC or BDC)
Good Debt Choice
Is it better to save a certain amount every month, or save whatever is left after expenditures?
Save a certain amount every month
What is an example of a primary source of income?
Salary/Wages, Self-employment/Entrepreneurship, or Freelance,
What are household budget + What are some examples?
A household budget focuses on the expenses in a household unit, some examples can include: Utilities, Entertainment, Clothes, Transportation, Lightbulbs, Cleaning Supplies, etc.
What is a good amount or an emergency fund?
$500-$1,000
What are the risks of debt? (4 Answers)
Debt can cause damage to a person's credit rating, limits flexibility, puts the person at risk of getting items such as houses taken away, and can put immense stress